Apparently, the IMF, World Bank and the WTO have issued a joint report/statement on the importance of open trading regimes. At the same time, they have called for labour compensation policies. Dani Rodrik calls it too late. He says that the rules of globalisation have to be changed completely. He offers a thumbnail sketch of the changes he wants to see, in this NYT piece published in September 2016. They are still somewhat general and vague for my taste but some specifics can be teased and tortured out of them.
I had not seen the WTO-World Bank-IMF report but saw a FT story on it. I left the following comment on the article:
It might be worthwhile for the Heads of IMF, World Bank and WTO to read Professor Robert Allen’s ‘Global Economic History: a very short introduction’. Countries liberalised internal trade and raised walls against external competition when they were trying to grow. We have no idea of what works.
If the Chiefs of multilateral institutions want to help developing countries access markets in the developed world, they must address two things: (a) They must make China fairer in trade. (b) They must make sure that unskilled and low-skilled workers in developed countries, their families and their communities are not affected by trade. If they are, they must be made whole. That means more than financial compensation or relocation, etc.
The key to sustaining global free trade is not to attack America or its President but to fix China’s trade practices.
Christopher Balding has tweeted as follows:
“You know what the probability of a foreign company getting approval to buy a $50b Chinese company? Hint: 0<p<0.00000000000000000000000000001” [Link].
Yes, I am aware that this is about investment and not about trade. But, find one respectable and objective economist or journalist who is willing to go on record that China is an open market for trade. Then, I would retract that this is not symptomatic of China’s overall openness or the lack, thereof.
Fix China trade and investment regimes and then issue statements on a open global trading regime.